Software deal cuts Cisco’s risk

Article Excerpt

CISCO SYSTEMS INC. $34 (Nasdaq symbol CSCO; High-Growth Dividend Payer Portfolio, Manufacturing sector; Shares outstanding: 5.0 billion; Market cap: $170.0 billion; Dividend yield: 3.4%; Dividend Sustainability Rating: Above Average; www.cisco.com) has agreed to buy BroadSoft Inc. (Nasdaq symbol BFST). That firm makes software to help businesses share data, video, voice and other files over the Internet. Cisco will pay $1.7 billion for BroadSoft when it completes the purchase in the first quarter of 2018. Expanding its software operations gives Cisco more predictable revenue streams and cuts its reliance on cyclical demand for its computer networking gear. The purchase should also give the company more room to increase its $1.16 a share dividend; it yields 3.4%. Cisco Systems is a top buy for 2017. 2017…